What does a Realtor look for in an Investor?

Question

I would like to ask a question in a backwards way.  As a Realtor, what qualities do you look for in an Investor that makes you really want to work with/for them?

I am particularly interested in those working with Investors chasing wholesale prices, making low end offers, properties anywhere between $50,000- to $250,000- so the low end properties.  It is these types of investors that few Realtors work with.  What questions should those Investors be asking of a potential Realtor to make sure that nobody's time is wasted?

What puts you off working with an Investor?

Would love a Realtors perspective on this type of work.

Dev Horn · Answer

PROOF OF FUNDS!

;-)

Agents & brokers generally prefer to work with cash buyers - at least those that CAN purchase in cash.  Agents do NOT want to work with people that have to scramble to find someone to make the actual purchase.  Many agents feel that "wholesalers" are acting as an agent/broker without a license.

REO agents work with investors all the time, and they are very savvy to figuring out who is a real cash buyer and who is trying to wholesale.  Generally, they do not want to work with wholesalers.

Licensed agents want to make $.  If you can make real offers and come to the table with real cash, you are someone that any agent or broker would love to work with...

Jeremy Davis · Answer

I think @James Wise hit it on the head! I would love to work with a bunch of investors who were serious about buying. A lot of investors like to "look" around to find a perfect deal. so a investor who is serious about buying is a good client.

Karl Krentzel · Answer

May I propose an alternative theory?  Instead of shying away from the wholesalers, recognize that they are going to be making offers anyway on MLS property.  Try helping them, offer to help provide comparables (which is why they are low in the first place) in return for any of the leads that they find that thy can't use.  One hand washes the other. You aren't paying a referral fee, but providing help.

They are much like new agents, they mail out Yellow Letters, postcards, bandit signs, etc. and create a lot of prospects many times.  However, they do not typically have the ability to articulate things clearly with Sellers, or close deals.  As such, that can be a convenient lead source for you if you take a longer term view on it.

Made a pretty good career out of that myself.  Just saying!

p.s. (Additionally, they are a great thing to add to your COI).

James Wise · Answer

Ability & Willingness to close.

Cierra Seay · Answer

@Linda Quinton  the qualities I look for in an investor client is someone who knows the type of investment that they are looking for meaning they have specific criteria that they stick to, someone who's loyal, has integrity, and someone who's fairly consistent. Price point isn't a big issue with me if I'm getting consistent business from the individual. Putting in a lot of offers doesn't bother me but if they're not being accepted we have to take a step back and look at why they're not being accepted. I love working with investors.

John Thedford · Answer

What do I look for?Cash in hand or proof of funds.Willingness to step up and do the deal.Buyers that are realistic and not wanting something for nothing.Knowledgeable buyers.

Andy Collins · Answer

I'm not a realtor, but I can tell you what they tell me that want is someone that isn't afraid to make offers and will close.  I don't waste their time on 50% of list offers, I always make fair offers, and unless something is wrong with the house I close....

I have specific areas I work in, I'm not trying to make a deal work that doesn't, and before I ever call my realtor I have looked at the property and ran the numbers,,

James Wise · Answer

I don't wanna work with anyone who doesn't have the cash to close.

also don't wanna work with anyone who only wants to do deals were they are making low ball offers.

I get people emailing / calling daily telling me they will take down any rental that returns over 20%

My response. ....yah me too.

Linda Quinton · Answer

I also agree with what Karl is saying, especially the one hand washes the other.  Yes I imagine there are wholesale investors who are time wasters, but it would be a shame to tar them all with the same brush as some are goldmines.

Yes wholesale investors are basically providing a link between a seller who wants to move property and an end investor who wants to grab it quickly to work with it and make some money.  There is a purpose for wholesale buyers.  Not all end investors know how to, or want to spend the time finding and getting offers accepted on good properties, many just want to receive the signed/sealed/delivered/calculated deals that wholesale buyers present to them.

A good wholesale buyer will have good relationships with a range cash buyers who are at the ready to view properties.  So while there may be a deal on occasion that falls through, it is not usually because they are trying to scurry off and find an end buyer it is usually a property issue that comes up during the inspection period.

I guess an agent who is experienced with wholesale buyers truly know the goldmine they can be, and those who have a preconception may not be best suited to working with them anyway.

Linda Quinton · Answer

I am sure no Realtor nor Investor wants their time to be wasted, and that is why it is good for us to all be clear on exactly the type of work we are trying to perform.

What does a Realtor look for in an Investor?

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